Our current overnight Policy Rate is 3 percent. Home loan would be higher, probably 4.3 percent? FD would be around the same number as the policy rate. This 3 percent is considered low as I started working in 1998. So, I have been through the days when car loans were double digits, home loan was 7 percent and this went down to as low as just 3.x percent for home loan not too long ago.
If I am a retiree who is not interested with any property investment and have all my money in the fixed deposits in the bank, I would appreciate a high interest rate so that my returns will be as high as possible for me to beat inflation numbers. At the same time, if I am a working professional looking to buy my first property, I would appreciate the lowest possible interest rate so that my monthly repayment is as low as possible and I will not be saddled with too high financial commitment. I still need money to enjoy good food in Malaysia! So, should the rates be high or should it be low then?
Briefly, nothing has changed. Bank Negara Malaysia (BNM) has decided. So, homeowners would not not need to pay more every month and depositors (fixed deposit) will get the same every year since the rate has not changed. Want to know what happens if the rate was increased? Here’s that article: Home Owners, you may have to pay more Do read the full policy statement release below.
Homeowners, your interest rate may stay the same or go higher? BNM will decide today. OPR lah. How much extra if I have a RM500,000
Once upon a time, when I bought my first property in 2003, the interest rate I was charged was around 6.75 percent. Just look at the chart below for some idea. Yes, you can also be very alarmed by the property buyers in 1998 when the rate went up to close to 14 percent…. Take a look at the calculation right below this chart on interest rate.
Property Investment 101: Can high interest rate slow down property price increase? It’s more expensive to buy when interest rate is higher I was just
Interest rate news: When the largest economy is thinking of cutting rates Which country increases their rates from 0 to 5.5 percent in roughly 1.5